Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment … rather than wages, at odds with the quantitative predictions of the canonical search model – even if wages are only … reservation wages, and consider an alternative reservation wage model based on reference dependence in job search. This extension …

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment … rather than wages, at odds with the quantitative predictions of the canonical search model - even if wages are only … reservation wages, and consider an alternative reservation wage model based on reference dependence in job search. This extension …